There are two cities s and n separated by a large mountain, Ask an Expert

Economics

There are two cities, S and N, separated by a large mountain. A firm with its manufacturing plant at the top of the mountain sells its product in both cities. Consumers in S: Ps = 410 - 10Qs Consumers in N: Pn = 110 - 5Qn. The firm’s marginal cost is: MC = 10.

A. How many units should the firm sell in each city and what price should it charge in each city? (Hint: Find Marginal revenue in each market first.)

B. What would you expect to happen if the government completes a tunnel through the mountain and opens an interstate highway between the two cities?

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M92203316

Have any Question?Write your Review or question?

Related Questions in Business Economics

While doing data entry you realize that you have made a big

While doing data entry, you realize that you have made a big mistake. every data value in your mistaken dataset is ten points less than it should have been. The standard deviation of the mistaken dataset was 201.2. You c ...

A car company claims that the mean gas mileage for its

A car company claims that the mean gas mileage for its luxury sedan is at least 24 miles per gallon. A random sample of 7 cars has a mean gas mileage of 23 miles per gallon and a standard deviation of 2.4 miles per gallo ...

Sally purchases hardwood lumber for a custom

Sally purchases hardwood lumber for a custom furniture-building shop. She uses three suppliers, Northern Hardwoods, Mountain Top, and Spring Valley. Lumber is classi ed as either clear or has defects. Sally estimates tha ...

In what kind of economy is a central planning board or

In what kind of economy is a central planning board or commission typically used to answer the basic economic questions?

Let x denote the number of spots on a single throw of a

Let X denote the number of spots on a single throw of a fair 6-sided die. Find the mean, variance, and standard deviation of X. If you can, relate the mean and variance to the mean and variance. the possible values on th ...

You have conducted a test and have this information p 03

You have conducted a test and have this information: p = .03 and a = .05, what is the probability that you will make a Type 1 error? If you want to decrease the chance of making a Type 1 error what should you change? You ...

Suppose an industry that has n1 2 firms each with a supply

Suppose an industry that has n1 = 2 firms each with a supply curve S1(p) = 2p-8, and n2 = 4 firms each with a supply curve S2(p) = p-2. Construct the industry supply curve and plot it on a graph.

What is asymmetric information and how does it affect the

What is asymmetric information and how does it affect the consumer or buyer?

In a sample of 200 college students 87 come from out of

In a sample of 200 college students, 87 come from out of state, 100 live on campus, and 63 come from out of state and live on campus : Draw a Venn diagram for this data Find P(I pick a student who come from out of state ...

Elasticity questionplease show work very elementary im

Elasticity question Please show work very elementary I'm having a hard time understanding. Find e=dq/dp*p/q at profit maximizing given the following: Qd = 12 - 4p TC = 8-12q + 3q^2

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Business Economics Expert